Question

Write short answers of the followings.

Define small business and give meaning.

Answer 1

The Government of India classifies an industry as a small scale industry on the basis of the level of investment made in it. Industries where the amount invested in the fixed assets (particularly plant and machinery) is less than Rs. 1 crore are regarded as small-scale industries. However, export-oriented units that use modern production techniques are considered as small-scale industries if their investment does not exceed Rs. 5 crore.
In order to measure the size of a business (so as to classify them in small industries), the following are parameters that are used.
(a) Number of people hired in the business
(b) Amount of capital invested in the business
(c) Volume or value or units of output produced by the business
(d) Power consumption by the business in carrying out its activities